Search: CAC
RBA Glossary definition for CAC
CAC – Collective Action Clause. A clause in bond contracts that includes provisions allowing a qualified majority of lenders to amend key financial terms of the debt contract and bind a minority to accept these new terms.
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Box B: The Greek Private Sector Debt Swap
10 May 2012
SMP
– May 2012
The majority of bondholders voluntarily participated in the exchange and the Greek Government activated collective action clauses (CACs) to compel most remaining holders to participate. ... As noted above, the activation of CACs constituted a ‘credit
https://www.rba.gov.au/publications/smp/2012/may/box-b.html